Back in 2008 when Bitcoin appeared, most people thought it wouldn’t last. But as history proved them wrong, the crypto enthusiasts began investing, turning the cryptocurrency into the hundred of billion USD market that it is today.
And over the years, many have profited from hodling BTC and other altcoins, mining and trading.
Holding on cryptos is one of the best strategies for high returns, but it can easily make you wish to reinvest those funds and gain more.
Trading cryptocurrency is risky and mining often requires an expensive setup.
But as staking becomes more and more popular in the crypto sphere, you can get more cryptocurrency just by delegating some funds to a token you believe in.
Table of Contents
The easy way of staking tokens
More and more cryptocurrency projects come with tokens that can be staked.
The good thing is that they get liquidity while you earn that sweet passive cryptocurrency income.
The bad side, there are so many to choose from that the next big thing in the crypto world is possible to still be under the radar.
Therefore we picked 6 easy to stake tokens for you that have a lot of potential and room to grow.
0x Token (ZRX)
For starters, 0x is an open-source protocol powering the decentralized exchange of peer-to-peer tokens based on the Ethereum blockchain. The protocol streamlines the trading with off-chain orders using Ethereum powered smart contracts. It avoids bloat and high gas consumption by only interacting with the main chain when settling transactions.
The 0x smart contracts are open source with an application-agnostic protocol. Thus ethereum dapps can be also built on it. There are already several projects built through the 0x launch kit, including Augur, Paradex, Radar.
ZRX is an ERC 20 token and is used as an incentive on maintaining the protocol. The holders also get vote rights over improvement proposals.
When it comes to staking, you can set-up a relay to broadcast transactions and get ZRX token rewards.
As you would expect, setting up your own node would be kind of a complicated task requiring technical skills.
Fortunately, 0x offers a staking wizard that allows auto staking. All you need is as little as a Meta Mask noncustodial wallet and to select a pool that supports your wallet.
By delegating, you’re rewarded with around 5% of your stake and the first staking rewards are available after 13 days.
NOW Token (NOW)
NOW is the internal ERC 20 token of ChangeNOW. ChangeNOW is a noncustodial instant swap exchange platform that matches buyers and sellers similarly to decentralized exchanges. The platform allows users to swap between 170 cryptocurrencies without requiring registration.
As for the NOW token, it exists simultaneously on Ethereum (as an ERC20) and Binance Chain (BEP2) and is used as a means of payment for ChangeNOW’s Asset Listing Campaign.
When it comes to staking, it seems like ChangeNOW is referring to its literal meaning and not referring to a confirmation nor voting process. That takes out of discussion any technical knowledge, allowing users to stake NOW directly through their website.
You can stake from 10 to 100,000 NOW tokens for a minimum of one week and a maximum of 2 years. However, the period impacts your ROI and Multiplier. For 1 week you get 0.1% ROI and 5% multiplier, and for 2 years you get 37.12% ROI and 25% Multiplier.
Although it is not your typical stackable token, NOW halves every time 1,500,000 tokens are distributed, in order to increase inflation, while keeping whales away with the 100,000 stake limit.
Synthetix Network Token (SNX)
DeFi is a hot topic in 2020, and so is Synthetix.
Synthetix is a derivatives liquidity protocol that was built on the Ethereum protocol. The platform allows users to issue and trade synthetic representations of real-world assets as ERC 20 tokens.
The synthetic asset (Synth) tracks the price of an external asset at a 1:1 ratio. It can represent the price of Bitcoin, the price of gold, even the price of Tesla stock.
Also, Synthetix allows the creation of tokens that track the inverse evolution of an asset called Inverse Synth (iSynth).
SNX serves as the collateral for the Synths minted on Synthetix. The SNX staking pool allows the platform to back the Synths with liquidity, so users can redeem their assets at their counterpart’s value.
As staking is based on a system of backing Synths, the platform implemented a strategy where SNX stakers need to manage their collateralization ratio to be above 750% to collect weekly rewards.
Although Synthetix’s staking can feel quite peculiar due to the collateralization ratio and the debt system, it comes with a 38-40% reward and can get quite fascinating once you get the gist of it.
DOS Network Token (DOS)
DOS Network is a chain-agnostic layer 2 decentralized oracle service network supporting multiple distinctive blockchains. It offers real-time data feeds and verifiable computation power to other blockchains, while connecting on-chain smart contracts and dapps with off-chain data sources.
The DOS tokens are used within the network to incentivize node operators, paying fees, and granting governance rights.
When it comes to staking, anyone is free to run the client software to join the network and earn rewards after depositing 800,000 DOS. In July 2020, that would have meant around $16,000 – but as DOS has started a bullish run, by now ( at the time the article was written), you would have to put in 10x times more.
On the other side, you can still join in by delegating to existing nodes and get a 31% APR (Annual Percentage Rate).
VITE Token (VITE)
VITE is a project that keeps flying under the radar while accomplishing achievements like no other. In just a year, the project launched it’s own mainnet, DEX, staking system, app, and many more.
The platform is built based on Directed Acyclic Graph (DAG) with a Snapshot Chain structure to facilitate zero-fee transactions and optimize transaction speed, reliability, and security.
As for the VITE token, it’s role on the network is to facilitate simple token transactions, smart-contract executions, and incentivize users staking VITE for transaction quota.
The token is also used for voting for Snapshot Block Producers (supernodes). As for the transaction quota, stakers can lease their unused quota to dApps and obtain their tokens.
If you want to open up a Snapshot Block Producer, you only need an 8 core-16GB RAM-100Mbps setup, 1,000,000 VITE, 200,000 votes, and to go through their application process.
For a more straightforward and carefree approach, you can stake through their wallet app.
Kyber Network (KNC)
Kyber Network is another prominent DeFi project bringing innovation into the cryptocurrency world. It is a decentralized exchange protocol that provides on-chain liquidity by giving users the ability to exchange ERC 20 tokens on the Ethereum blockchain with the help of smart contracts.
The KNC token is used within the Kyber Network mainly to incentivize the governance participation by staking.
KNC holders can stake the network’s tokens to vote on important proposals. In return, they receive rewards in ETH from network fees collected from trading activities within the Kyber Network.
The requirements for staking KNC are quite simple. You only need an Ethereum wallet that holds KNC tokens and to connect it with the Kyber.org platform. There is no minimum or maximum amount required, and neither a lockup period. But the amount of rewards you can get is proportional to the amount of stake and the participation in the voting process.
The huge number of new cryptocurrency projects arising every year is both a blessing and a curse. It’s impossible to track all of them and find the right opportunities. But at least there is enough variety to suit every taste.
In any case, take all information with a grain of salt and do your own research, because although a project might promise great returns, you can only get the gist of it only after you know how it works out for you.